CITs Top Investment Vehicle Among Big DC Plans

Collective investment trusts may be an emerging notion for many defined contribution plans, but they are already well ensconced among the nation’s largest plans.

According to Pensions & Investments’ listing of the 100 largest corporate DC plans, collective investment trusts were the most popular investment vehicle, with $305.1 billion in assets. Mutual funds were well behind that total, with $221.5 billion, while separate account holdings totaled $66.3 billion.

A P&I analysis shows that company stock accounted for $207.5 billion, or about 19.4% of the aggregate $1.07 trillion in DC plan assets among the 100 largest corporate plans. Other options included:
• domestic large-cap equity ($180.8 billion);
• stable value ($118.9 billion);
• balanced funds and target-date funds ($103.9 billion); and
• all other fixed income ($97.3 billion).

Brokerage windows constituted about 2% of aggregate assets among the plans in P&I’s universe.

P&I drew its data from federal documents, including the Department of Labor’s Form 5500 and the Securities and Exchange Commission’s Form 11-K, primarily for companies’ 2013 plan years, the most recent data available at the time of the analysis. The analysis covers U.S.-based companies, both public and private, but it excludes mutual companies.

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